Nov 25, 2020

Ivalua, Consus deliver Jollibee's Procurement Transformation

#consus
#ivalua
#jollibee
#procurementtransformation
Scott Birch
3 min
Food service network Jollibee digitizes procurement via spend management cloud provider Ivalua and supply chain solutions provider Consus
Food service network Jollibee digitizes procurement via spend management cloud provider Ivalua and supply chain solutions provider Consus...

Jollibee Foods Corporation (JFC) has deployed spend management cloud provider Ivalua's platform to empower its procurement digital transformation, with Consus leading the implementation. 

The expansive project covered Supplier Information, Risk & Performance Management, eSourcing, Contract Management, Catalog Management, Spend Analysis, Savings Tracking, Category Management, and widespread change management.

JFC is a chain of fast food restaurants with a worldwide network of more than 5,000 stores. It operates the largest food service network in the Philippines – with 3,316 stores in the country as of December 2019. 

JFC has utilized best-in-class processes and technologies to support its rapid domestic growth. As JFC continued to grow and expand internationally, it required an integrated global procurement platform.

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JFC selected Ivalua's platform due to its ability to support every stage of the company’s planned transformation, including quick deployment and the flexibility to meet changing requirements. 

Consus was selected as implementation partner for its deep source-to-pay expertise. Additionally, JFC was looking for a trusted partner aligned with its own ‘customer experience first’ vision to both disrupt current processes and adopt best practices globally.

The deployment was integrated with JFC's backend SAP ERP systems to ensure seamless flow of information and maximum automation. The platform will deliver a range of benefits to JFC, including:

  • improved governance and auditability
  • more efficient procurement processes
  • more informed analysis and decision-making
  • proactive risk management
  • improved supplier qualification and collaboration
  • better compliance with contracts and policies

Milestone in procurement transformation

"This represents a significant milestone in our procurement transformation, which will allow us to deliver more value to the organization, employees, customers and suppliers," said Susan Tanmantiong, Chief Procurement Officer of JFC. 

"This project was successfully implemented by Consus and Ivalua through the commitment and support of their executive leadership. Ivalua's platform empowers us with the leading technology needed to deliver on our vision."

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Shantanu Bhowmick, Chairman & CEO at Consus Global added: "I believe that the combined team of Ivalua, Consus and JFC have delivered a long-term and sustainable solution to digitize the enterprise wide Source-to-Receipt Process at JFC. 

“With procurement transformations of this nature and magnitude, there are both short-term and long-term benefits. The integrated Ivalua solution deployed will not only bring increased spend under management on one platform but also allow Jollibee to collaborate both internally and externally to create sustainable value, improve supplier performance and manage supply chain risks."

According to Dan Amzallag, CEO at Ivalua Inc., this project is a great example of how seemingly ambitious transformations can be implemented quickly with the right technology and partners.

"Consus has been a long-term partner of Ivalua, whose experience translates to significant value for our customers. And the JFC team's customer-centric approach, vision and energy was key to the rapid deployment," said Amzallag.

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Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

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